Thursday, July 5, 2012

NATIONAL SEMINAR ON ‘FOOD SAFETY – ROLE OF STANDARDS’

INAUGURAL ADDRESS OF PROF. K.V.THOMAS, HON’BLE MINISTER OF STATE (I/C)


OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

AT THE NATIONAL SEMINAR ON ‘FOOD SAFETY – ROLE OF STANDARDS’

ON 28TH MAY, 2012 AT THE CENTER HOTEL, THE AVENUE CENTER, KOCHI:





Dignitaries on the Dias and distinguished participants:



It is a matter of great pleasure that Bureau of Indian Standards (BIS) is organizing this National Seminar on “Food Safety – Role of Standards” so as to create awareness and to provide an insight into the concept of Food safety with special focus on the role of standards for the larger benefit of public health.



We live in an age of contamination: of environment, food, water and of most other ingredients essential to human existence. For this reason this seminar, focused on one of these aspects, namely food safety, is of immense relevance to our individual and collective wellbeing.



"We are what we eat" is an old proverb. Our Scriptures say, “Annam Brahma, Raso Vishnu, Bhokta deva Maheshwara" (Food is Brahma, the essence in it is Vishnu, and the one who partakes of it is Maheshwara the lord Himself). The act of consuming food is considered to be a Yajna (sacrifice) and the offering goes to the digestive fire in the belly called Jattaragni. Our nutritional status, health, physical and mental faculties depend on the food we eat. Access to good quality food has been man's main endeavour from the earliest days of human existence. Food quality can be considered as a complex characteristic of food such as nutritional value, appearance, colour, texture and taste that determines its value or acceptability to consumers. Safety of food is a non-negotiable basic requirement of food quality.



"Food safety" implies absence or acceptable and safe levels of contaminants, adulterants, naturally occurring toxins or any other substance that may make food injurious to health on an acute or chronic basis. This definition implies that food safety goes beyond cheating on ingredients. It endangers life.



Food Safety has been a matter of concern in all ages. Kautilya’s Arthashastra has a section on the control of butchers and prescribes punishment for selling bad meat or fish. Perhaps malpractices with regard to other edibles did not exist then and until the advent of the modern age, man-made contaminants were not a serious factor.



Today, it is a matter of growing national and global concern. India has made significant strides over the past several decades in food production and in its exports. India is number one in the production of milk, sugarcane, cashew and spices and the second largest producer of rice, wheat, pulses, fruits (after Brazil) and vegetables (after China).



Although significant progress has been made in India in making food safer, millions of people still fall ill each year from eating contaminated food. Consumers are taking unprecedented interest in the way food is produced, processed and marketed, and are increasingly calling for strong initiatives from government and industry for food safety and consumer protection.



There is also an external dimension to the issue of food safety. We live in a world where food and agricultural products is an important segment of world trade. The globalization of the food trade offers many benefits to consumers, as it results in a wider variety of high-quality foods that are accessible and affordable. Global food trade also provides opportunities to earn foreign exchange, though, in order to be a successful food exporter, a country must produce food that is acceptable to consumers in other countries and which complies with the regulatory or statutory requirements of the importing countries.



Viewed from these angles, role of standards in the domain of food safety is immense. The main objectives behind formulation of standards include:



 Promoting public health by reducing the risk of food borne illness;

 Protecting consumers from unsanitary, unwholesome, mislabelled or adulterated food; and

 Providing a sound regulatory foundation for domestic and international trade in food.



In this background, the role of Bureau of Indian Standards, the National standard body of India is significant. BIS is engaged in standards formulation and conformity assessment. It has made significant contribution by way of formulating a number of Indian Standards in various fields in accordance with the needs and priorities of our country and adopting various International Standards to suit our national conditions. BIS has formulated about 18700 Indian Standards, covering various technological areas. About 88% of Indian Standards have already been harmonized to International Standards where such International Standards exist. BIS has been promoting these Indian Standards through organization of seminars, like this one.



BIS has also formulated about 1000 Indian Standards in the area of food products and food safety. This includes IS/ISO 22000: 2005 ‘Food Safety Management Systems – Requirements for any organization in the food chain’. This is an internationally harmonized standard that specifies the requirements for a food safety management system, up to the point of final consumption. IS/ISO 22000: 2005 has emerged as the international bench mark for food safety.



Similarly, the three Indian Standards recently formulated by BIS which have been released just now, such as, Indian Standards on Good Manufacturing Practices (GMP), Good Hygienic Practices (GHP) and Food Retail Management (FRM) are also important in this respect as they act as prerequisite programmes (PRPs). And they delineate the basic conditions and activities that are necessary to maintain a hygienic environment throughout the food chain suitable for the production, handling and provision of safe end products and safe food for human consumption.



Friends, another area that merits special attention in this context is that of street foods and street food vendors. Recent growth in this sector has been phenomenal with important economic and nutritional implications in the urban context. Readily accessible and affordable to urban populations, they provide the energy and nutrient needs to large segments of workers and their families in the cities. In this scenario, BIS has recently finalized Indian Standard on basic requirements for street food vendors and I feel this is a noteworthy initiative by BIS.



These Indian Standards have immense potential to safeguard public health and also promote the confidence of the consumer on entire gamut of food industry, if implemented efficiently. Implementation of these standards can give rise to exceptional improvements in food safety performance, but requires high level of commitment and full functional involvement of all stakeholders, particularly the industry.



I wish and I am sure that this seminar will provide a good platform for mutual sharing of views to meet and resolve the challenges in ensuring and implementing Food Safety and Standardization. I wish the organizers and participants all the best in this endeavor and hope that this initiative will contribute to the ultimate objective of ensuring the food safety for our citizens. With these words, I, formally inaugurate the seminar.

INAUGURAL ADDRESS OF PROF. K.V.THOMAS, HON’BLE MINISTER OF STATE (I/C)






















INAUGURAL SPEECH OF PROF. K.V. THOMAS, MINISTER OF STATE (I/C) OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION AT THE SEMINAR ON “INDIAN COMMODITY MARKETS AND FCRA AMENDMENT BILL, 2010” ORGANISED BY FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY (FICCI) AT NEW DELHI ON 4TH JULY, 2012:







Shri Rajiv Agarwal, Secretary, Department of Consumer Affairs, Shri Ramesh Abhishek, Chairman, Forward Markets Commission, Dr. Arbind Prasad, Director General, FICCI, Shri Venkat Chary, Chairman, MCX, Mr. Nick Ronalds, Executive Director, FIA Asia, President, Asia Markets, friends from the media, ladies and gentlemen:



I am happy to be here today amongst you at the Seminar organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) under the title of “Indian Commodity Markets and FCRA Amendment Bill 2010.” This is indeed a very welcome initiative of FICCI. I congratulate FICCI on their pro-active efforts in organizing such an event as they help in generating a healthy debate on a crucial subject of commodity futures trading and its contributions to the economy.



The commodity futures markets in India have come a long way since 2003, the year when three on-line electronic trading exchanges came into existence and futures-trading in over 100 commodities was allowed. It is a matter of great satisfaction that over the years, the volume of trade has increased considerably with the number of members and clients and contracts traded on the exchanges having increased significantly.



While there is an understandable excitement regarding the significant growth of this market, it cannot be denied that there are also apprehensions in equal measure among some quarters whether the market is truly achieving its objective of price discovery and price risk management and helping farmers and hedgers. We need to take a balanced view and address the apprehensions as well as the challenges before us to enable the market to live up to the expectations of farmers and hedgers. It is well known that hedgers transfer their risk in this market which is assumed by the speculators who bring in the liquidity and that greater participation and volumes lead to a more efficient price discovery, thereby reducing the possibility of price manipulation. An analysis of the trade volumes on futures market indicates that in case of some commodities, the volumes are much higher than the open interest, thereby indicating that the extent of hedging is much less than the speculative volumes generated. It is also seen that in respect of a number of commodities, the volume of participants is not very significant. It is a matter of concern for us, as this will result in poor quality of price discovery in such contracts. There are also apprehensions in some quarters that these markets are contributing to, if not leading to, price rise and price volatility of commodities.



A number of studies and reports do indicate that futures trading in commodities cannot be said to be responsible for price rise. It is, however, possible that if futures-market is not aligned properly with the physical market, price discovery in the futures platform may become distorted which may be misused by vested interests. Such a situation can only be avoided when hedgers and potential hedgers are encouraged to participate in this market in large number.



The Forward Markets Commission (FMC) has been taking a number of initiatives to address the above challenges. To improve hedging which is reflected in higher open interest, the Commission has asked all the commodity exchanges to prepare a road map for improving the volume open interest ratio by increasing hedgers’ participation. We need to create awareness among the hedgers and industry associations about these critical issues – it is here that I would expect and request industrial bodies such as FICCI to play their important role in creating such awareness among the potential hedgers for using the commodity futures market as an effective tool to manage their commodity price risk.



I am told that the FMC has also started a comprehensive exercise for alignment of futures market with the physical market. A staggered delivery system has been introduced in a number of agricultural commodities. This has already resulted in significant reduction in excessive speculation in the near month and in reduced price volatility in these commodities. The FMC is also reviewing all the futures contracts traded in the market to examine if those are suited to the needs of the physical market participants. The feedback of physical market participants and other stakeholders has been sought and it is proposed to review these contracts and make suitable modifications as required.



The Government is also considering constituting an Advisory Committee to provide an institutional mechanism for the Government and the Commission to consult all the stakeholders regarding the regulation of commodity futures market. I have no doubt that these measures are bound to bring about much needed changes in the working of these markets by bringing down excessive speculation, improving hedging and better aligning with the physical market.



One of the primary objectives of Commodity Markets is to help farmers to get best possible price for their produce. The farmers, especially small and marginal, are not able to participate in the market directly. They do so through aggregators. Therefore, the FMC has asked the exchanges to promote aggregators on a pilot basis in the agricultural commodities so that the market benefits the farmers much more. The Price Dissemination Project of the Commission is being implemented across the country with 1400 ticker boards already have been installed and 7500 proposed to be installed during the next 5 years. The price signals coming from futures market also help farmers to take important sowing and marketing decisions. Farmers would be benefited far more by introduction of options which would be possible after the amendment of the FCR Act.



The participation of institutions such as Banks is also necessary to bring adequate liquidity to this market. Introduction of investor protection measures will instill a sense of confidence in the retail clients encouraging them to participate in large number. Investor Protection Fund has been set up in each exchange with over Rs. 65 crores and a trust is being set up to operate the fund. The clients are now getting SMS and Email alerts every day regarding the trade done in their account. A uniform KYC norm has been introduced and quarterly settlement by members with clients has also been done. In the last one year FMC has proactively taken several such measures. There is also a need to undertake a major media campaign in collaboration with the Exchanges to increase investor education in all the States on a sustained basis.



The need for strengthening regulatory mechanism through Amendment of FCR Act has been discussed over the years and it is certainly necessary to strengthen this mechanism. The proposed amendment of FCRA would enable the FMC to play a more effective role in regulation of these markets. The amendment would also bring in much-needed new products such as options. However, there is also a need that all the stakeholders appreciate the need to take this market to a new level where the hedgers and farmers would be the primary beneficiaries and this market would play its rightful role of providing price discovery and price risk management functions to the physical market participants. This would provide necessary confidence to the policy makers as well as law makers to bring about the necessary changes in the legislative structure of the commodity futures market.



With these words, I have great pleasure in inaugurating this Seminar.





Tuesday, February 21, 2012

THE 77TH ANNUAL GENERAL MEETING OF THE INDIAN SUGAR MILLS ASSOCIATION (ISMA)

INAUGURAL ADDRESS OF HON’BLE MINISTER OF STATE (I/C) CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION AT THE 77TH ANNUAL GENERAL MEETING OF THE INDIAN SUGAR MILLS ASSOCIATION (ISMA)
21ST DECEMBER, 2011 AT NEW DELHI

Shri Narendra Murkumbhi, President, Indian Sugar Mills Association (ISMA), Shri Gautam Goel, Vice-President, ISMA, Shri Abinash Verma, Director General, ISMA, senior Government officials, members of Indian Sugar Mills Association, my friends from the media, ladies and gentlemen! It gives me immense pleasure to be amongst you on this august occasion of the 77th Annual General meeting of the ISMA to share our views with one another on an important segment of our economy, the sugar industry.

2. The mandate given to us is for fulfillment of promises given to the people by the Government - for inclusive growth and equitable development. The faith reposed in us has to be respected and the commitments fulfilled. Our policy decisions, therefore, must reflect a real concern on the part of the Government for providing a future to every citizen of the country that is bright and prosperous.

3. What ails sugar industry, what has been done to promote its cause, what needs to be done to improve upon it and, how far can we go in furthering benefits that can be reaped through understanding our strengths and compulsions? - all these points need deliberation. I was carefully listening to the concerns expressed by the President, ISMA in his Presidential Address. The reaction to the concerns expressed can only come through the prism of a wider canvass for an equitable development of the nation. On the concerns over cyclicality in the sugar sector, one could not agree more; there is a need to tackle this phenomenon to arrive at a long-term solution. I would ask the Department of Food & Consumer Affairs to look into this sympathetically for the importance that it deserves. I would welcome suggestions from the industry and farmer-bodies on how to cope with it. The issue of decontrol or deregulation of the sugar industry, as you are aware, has been discussed at the highest levels. Since this involves a large number of stake holders - from the sugarcane farmers, the sugar mills, the State Governments to the consumers, a consensus needs to be arrived at on this issue. You all know that the Government lowered the percentage at which levy sugar was to be supplied by the sugar mills during 2010-11 on the expectation of a higher production. Based on present production estimates, we have retained the levy procurement at the same level. We have also removed the stock holding limits on bulk consumers of sugar in August 2011. This should improve the off take of sugar in domestic market as the bulk consumers would stop sourcing sugar from abroad. In addition, the stockholding and turnover limits on dealers of sugar have been removed with effect from 1st December 2011. I am sure these will address the concerns expressed.

4. With these concessions, it is imperative that the sugar industry ensures availability of sugar at reasonable prices to the consumer in the coming months. I compliment you for the stability in sugar prices that could be maintained during the most part of the last sugar season. I can understand that the higher cane prices announced by some State Governments would adversely affect input costs and thus the overall cost of production. I can only advise you to take this as a challenge to help improve sugarcane productivity through better agronomic practices in your areas and also attempt to enhance the technical efficiency in a bid to reduce conversion costs. The sugar industry in India is now providing technical support to nascent industry abroad and thus there is no reason why the improvements cannot be brought about in the indigenous sector.

5. I take this opportunity to request the State governments to consider the impact on the sustainability of the sugar sector before announcing radical increases in sugarcane prices, as the wide disparity between cane and other crops may also adversely affect the food security of the country. I would also urge the Department of Food and Public Distribution to consider possible changes in the release mechanism, which could improve the liquidity of the sugar mills in the sugar crushing season without adversely affecting the availability of sugar at a later part of the sugar year.

6. Shri Narendra Murkumbhi has spoken in great detail about the need for a cane price formula to be adopted along the lines being followed in other major sugar producing countries. I may inform you that the matter has been under examination by the Economic Advisory Council to the Prime Minister and, I am sure the matter would get due consideration. I have also made a request that while considering the issue of the cane price formula, the larger issue of de-regulation of sugar sector is also considered, as the Council could better collate the views of all stakeholders.

7. Shri Murkubhi has given an impressive projection of the economics of “Ethanol Blending Programme” and the opportunity it affords in a time of rising fuel prices. You all know that it has been with a great deal of struggle and amidst stiff opposition from certain sectors that the programme could finally take off. You would appreciate that for the programme to go on and be a source of additional revenue for the sugar industry, adequate supply of sugarcane on a sustained basis is imperative. The industry has to seriously look at a long-term perspective and take up cane development as a core activity. This will necessitate better interaction and forging of long-term relationship with farmers. I, on my part, would assure you that my Department would take up the matter with the stakeholder Departments in the Government to expedite the decision on the pricing formula so that there is a greater degree of certainty to the sugar industry regarding the use of ethanol.

8. Now, I come to that aspect of policy which is being pushed the hardest by industry and watched closely by the global market – exports of sugar. I appreciate the need for and the role of export earnings to offset the cane price arrears. I also thank the President for the kind words and compliments he had showered on the Government for its decision for 3 tranches of export, and more so for the benefit accrued to the industry, specifically to every single mill in the country, by the Government’s decision to allocate mill-wise quota. However, you will appreciate that exports cannot take priority over domestic requirements. But let me assure you, projections of output made earlier are being monitored and modalities being worked out should the situation allow for more exports.

9. I am given to understand that ISMA has taken steps to improve the information regarding sugarcane plantation by initiating satellite mapping. I am very glad - this is a laudable step and, I am sure better inputs and information would enable the industry and the Government to be more accurate in our assessment of sugarcane and sugar production which will result in policy decisions being taken more expeditiously. I would also urge upon the industry to take an active role in policy decisions by providing us with correct and timely inputs. The Directorate of Sugar has put a modified reporting system in place. I would exhort the industry to comply with this as timely submission of reports allows for quick policy interventions to the benefit of us all.

10. You will be happy to know that our candidature for holding the 2012 Summer Session and Seminar of the International Sugar Organization (ISO) in India has been formalized with Dr. B.C. Gupta, Secretary, Department of Food & Public Distribution having been elected Chairman of the ISO at its meeting in London in the first week of December 2011. This is a great honour bestowed on India. I would request the ISMA and National Federation of Cooperative Sugar Factories to extend full help and support to the Government to make this great occasion a grand success.

11. Before concluding, let me congratulate the ISMA on completion of another year in the service of the sugar industry. I also happy to compliment Shri Narendra Murkumbhi on his successful innings and wish the incoming President, Shri Gautam Goyal all success as he dons the mantle to guide the industry to a prosperous future. The Government on its part will do everything it can so that the voyage that we take together will result in buoyancy in the sugar industry that will contribute to the thriving of national economy.

JAI HIND!
SPEECH OF PROF. K.V. THOMAS, HON’BLE MINISTER OF STATE (INDEPENDENCE CHARGE) CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION AT THE 56TH ANNUAL NATIONAL CONFERENCE OF INDIAN PUBLIC HEALTH ASSOCIATION (IPHA) AT KOCHI ON FRIDAY, 10TH FEBRUARY, 2012:


It gives me immense pleasure to be amongst you at the 56th Annual National Conference of Indian Public Health Association being held here, at Kochi, the beautiful Queen of Arabian Sea. I congratulate the IPHA Kerala State Branch, which is just two years old, on their laudable proactive efforts in organizing the conference in an appreciable manner.

I am told that the IPHA is the oldest public health association in India having been established in 1956, with a membership of over 6000 – a mix of academicians, research workers, administrators and managers of public and private health care delivery systems/institutions, national and international Non-Government Organizations and freelance public health practitioners. Needless to say, public health associations like the IPHA can play an important role in guiding the public and policymakers in formulation of policies and programmes on public health issues. With your expertise, your contribution will make a difference in the policymaking process and help shape the national debate on matters of public health by identifying and eliminating the constraints, and in planning effective future strategies.

Hon’ble Prime Minister of India, Dr. Manmohan Singh, had stated that the Government will lay the same emphasis on health in the 12th Plan as was laid on education in the 11th Plan. You all will be happy to know that the 12th Plan, with its focus on Comprehensive health Care Coverage, envisages an increase in health expenditure to 2.5% of the Gross Domestic Product (GDP). We have a great challenge on hand in meeting the health needs of the people. The discussions and debates that we have must help us examine the path we have travelled so far and reach the milestones that we have set for ourselves in respect of financing and governance of health services.

It is a matter of great consolation that in terms of life expectancy, child survival and maternal mortality, India’s performance has improved steadily. Life expectancy is now 63.5 years, infant mortality rate is now 53 per 1000 live births, maternal mortality ratio is down to 254 per lakh live births and total fertility rate has declined to 2.6. However, we must also accept the fact that there are wide divergences in the achievements across States. There are also inequities based on rural urban divides, gender imbalances and caste patterns. These are the areas which require a national consensus that will determine the nature of the health system in the coming days; it is here that public health advocates like the IPHA can step in to help/guide the policymakers.

The third Millennium Development Goals – India Country Report 2009 has also cautioned us on gaps in implementation of pro-poor policies in delivery of public services, where health too is a major challenge. The stakes are high. But as we look at the past and the distance that we travelled since independence, it gives us hope that with courage and conviction, we can together strive to bring in improvements in the standards of living of our people. Coming together strengthens us and as we join hands, nothing looks impossible and no problems seem insurmountable.

I hope the three-day conference that you have painstakingly organized will lead to a healthy discussion and debate upon a wide range of issues which you plan to cover including the Millennium Development Goals with their focus on India, universal health coverage and prevention of non-communicable diseases, tobacco cessation, HIV, Pentavalent and other new vaccines, immunization and child rights, management of snake and dog bites, micronutrient deficiency and malnutrition, health system research, Revised National Tuberculosis Control Programme, etc.

I convey my best wishes to all of you and hope the deliberations at the conference with the focus on public health priorities for the 12th Five Year Plan will prove to be quite fruitful.

JAI HIND!

Thursday, February 2, 2012

Silver Jubilee Celebrations of the Consumer Protection ACT-1986



SPEECH OF HON’BLE MINISTER (INDEPENDENT CHARGE) OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION ON THE OCCASION OF NATIONAL CONSUMER DAY 2011 AND SILVER JUBILEE OF THE CONSUMER PROTECTION ACT,1986

Dated: 1.2.2012, IIPA Hall, New Delhi.

I am delighted to be with you today at the Inaugural Ceremony of the celebrations by the Indian Institute of Public Administration, New Delhi marking 25 years in operation of “The Consumer Protection Act, 1986” coinciding with the National Consumer Day 2011. On this momentous occasion, I take pleasure in conveying my hearty congratulations to the Department of Consumer Affairs, State Governments, VCOs, and consumer activists on their vital contribution in building the consumer protection in India into a mass movement - that too, a vibrant one.

2. We have just celebrated completion of 25 years of progressive consumer movement since the coming into force of the Consumer Protection Act. It also presents an ideal opportunity for us to re-focus on how best to meet future challenges of the consumer movement. Indeed, this is an exciting time; because, consumer policy is steadily moving into the forefront of our policy agenda. With globalization, international trade and commerce offers increasing number of new goods and services, hitherto unheard of, in the fields of insurance, transport, electricity, housing, entertainment, finance and banking. The days of the consumer with a passive role in the business equation, and being viewed just as the last stop in the supply chain, be it for goods or services, are over. Consumer policy was even seen by some to be a threat to business success. Not long ago, it was difficult for the consumer to penetrate the wall of a fortified and well organised sector of manufacturers and traders with a deeper knowledge of markets. They were at an advantage which the consumer lacked. But now we have brought about a change in how consumers are perceived in the market place – as primary driving force of economic activity. President Kennedy observed and I quote: "The consumer is the only man in our economy without a high-powered lobbyist. I intend to be that lobbyist." It shows the importance a top industrialised country accords to its consumer. Indeed, there is a growing recognition among the business world that a sound consumer policy would contribute towards successful businesses for the healthy competition that it encourages. It cannot be denied that a consumer empowered with awareness about his rights makes the market function better and thrive. An effective consumer movement drive out inefficient manufacturers out of the market and reward the efficient and innovative ones.

3. The Consumer Protection Act 1986 being the pivotal, the government, consumer activists and associations have to come together to make consumer protection movement quite successful. Consumers play a vital role in the economic system of a nation because in the absence of effective demand that emanates from them, the economy virtually collapses – because, as Mahatma Gandhi succinctly put it, "the consumer is not an interruption to our work; he is the purpose of it.”

4. Amongst the various efforts undertaken, consumer information and education will remain the two most important areas of concentration as they are the most effective means to counter the unscrupulous designs and malpractices of manufacturers and retailers alike. Consumer education is a life-long education to contribute to basic survival needs of all age groups. But among the consumers, the disadvantaged groups, particularly vulnerable to the economic and social inequalities, the low-income earners, the unemployed, the physically and mentally handicapped, the immigrant work force – all they need our special attention. “Jago Grahak Jago” is an innovative attempt at reaching these very segments of the society through the media, especially the electronic media. Educating and empowering the customer through catchy skits on the electronic media would definitely succeed in creating awareness on one’s rights as a consumer. These have proved to be not only educative but empowering too in that this attempt has shocked and surprised the layman about his rights, encouraging him to fight for his or her rights as a consumer. I have asked the Department of Consumer Affairs to examine how this could be made ever more potent through improvements in their contents, delivery mechanism, presentation, etc., so as to be able to cover still wider audience. This is all the more important as a segmented rather than a mass approach may be needed in future to disseminate consumer education through the formal and non-formal systems.

5. Completion of 25 years of implementation of Consumer Protection Act provides us with an opportunity to assess what has been achieved and what still needs to be done. The future of consumer protection will no doubt rely on co-operation between Central and State governments. The Federal system of government will mean that there will be many Constitutional constraints that restrict the Centre’s powers in many areas. A co-operative approach will result in uniform implementation of consumer protection laws and rules across all jurisdictions. A range of reforms in the Consumer Protection Act has been proposed by the Ministry of Consumer Affairs that will have an effect on the laws administered by the States. These changes will further benefit the consumers and speed up the grievance-redressing processes. We are currently gathering input from all stakeholders to assess its impact. Our future strategy will focus on the consumer and will be based on safety, information (and education), redressal and the enforcement of rights. On product safety, we are moving ahead with the revision of the Bureau of Indian Standards Act following extensive consultations with the public and the stakeholders. The amendments felt will clarify and update product safety rules. We seek to deliver more effective, co-ordinated action by market surveillance authorities, a level playing field for businesses, and above all, an internal market of safe goods for Indian consumers. The amended Act would be liberal in that it will allow manufacturers to advertise the quality of their products on their own without a certificate from the BIS. This of course will be subject to surprise checks by the BSI. The Act further stipulates that each company will have a Director in-charge of quality who will be prosecuted in case of violations on this count by the company.

6. Hall-marking of gold has been made mandatory which aims at protecting the interests of consumers and prevent frauds in sale of gold jewellery. The BIS (Amendment) Bill will empower the government to bring in compulsory certification regime any article and/or process that it considers necessary from the point of view of health, safety, environment and prevention of deceptive practice. Besides mandatory hallmarking, the amendments moved by the Ministry sought to introduce registration of relevant standards as an alternative mechanism to the compulsory certification regime to facilitate growth of sunrise sectors and protect consumers from spurious and substandard imports.

6. The future strategy of Consumer policy is to be built on three overarching objectives –
· to empower consumers and to widen choice;
· to enhance their welfare and educate them how to choose; and
· to give consumers effective protection and recourse.

In addition to effective tools for enforcement we need effective mechanisms for redressal of grievances when things go wrong. We have initiated steps with possibilities for an individual consumer to take up alternative dispute resolution mechanisms such as mediation or conciliation. Collective redress is also one area we are currently looking at.

7. I would like to mention about an essential aspect of consumer policy that we should take note of – the changing nature of consumer behaviour and aspirations. Though consumers continue to be concerned about price, choice, quality and safety, ethical considerations are also gaining grounds in the minds of consumers. And environmental concerns – particularly against the backdrop of global warming – are also being felt. Indeed, the concept of sustainable consumption at all levels – political, business and individual – will no doubt dominate policy formations in the years to come. Consumers are major contributors to environmental challenges such as climate change, air and water pollution, land use and waste. The protection of the environment and the fight against “climate change for the worst” calls for better information in areas such as energy and transportation where informed consumers could make a real difference.

8. I would like to conclude my address with three messages which I believe have great importance. First, consumer policy in India has come of age. Delivering what consumer wants is going to be the key to economic success and political credibility. Secondly, we must never lose sight of the fact that consumer’s desires and aspirations are constantly evolving, covering corporate responsibility and sustainable consumption. As the world changes, so do our attitudes and priorities. Finally, the world is getting smaller. It is becoming a global village. Interdependence between markets in the global environment demands that we grow closer together – to seek common solutions and approaches to shared problems and situations, especially in view of developments in global governance that require individual countries to adopt National standards to agree internationally. In a nutshell, national and community efforts that are complementary are essential if we have to achieve our overall objectives. More coherent consumer protection legislations through legitimacy to principles of consumer rights will work towards increasing consumer’s confidence and result in a more competitive internal market.

9. The joy of empowerment is in the availing of opportunities that exist to realize one's full potential. The dreams of a nation marching forward with contribution from all cannot become a reality until every consumer is assure of refreshing winds of empowerment, which can give them the joy of being in charge of their destiny in terms of quality products and services. All of us can be a part of this journey, by making determined, meaningful and constructive efforts that would change the life of consumers, by lending collective support. Let us all therefore, join hands together in this noble journey to celebrate the joy of empowerment of the consumers of India that will result in increased benefits to one and all and, ultimately leading to a prosperous and growing economy that will become the envy of global industrial community.

THANK YOU.

...

26th meeting of the Central Consumer Protection Council Meeting on 31.1.2012, in New Delhi



INAUGURAL ADDRESS OF PROF. K.V. THOMAS, HON’BLE MINISTER (I/C) OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION ON 31ST JANUARY, 2012 AT 11.15 A.M. AT THE NATIONAL COOPERATIVE DEVELOPMENT CORPORATION, NEW DELHI:


Distinguished Members of the Central Consumer Protection Council and Hon’ble Ministers of various States, senior officials from Ministries and Departments of the Government of India, Heads of NGO’s, officers from the Department of Consumer Affairs, friends from the media, ladies and gentlemen:

It gives me great pleasure to be amongst you all at this 26th meeting of the CCPC where we have gathered to deliberate on various issues concerning consumer protection – not only to revisit our achievements but also to examine issues concerning consumer protection in depth which may need further improvements.

We have just celebrated completion of 25 glorious years of Consumer Protection Act 1986. A watershed in consumer movement, the enactment of the Act has been a benevolent social legislation, laying down the rights of consumers and providing means for their promotion and protection. The Consumer Protection Act mandates formulation of “Consumer Protection Councils” at District, State and National levels with an objective to protect rights and interests of consumers. The CCPC is the apex body functioning at the national level in which you are all members with a significant role to advise and guide on the policy issues relating to the interests of the consumers. Your valuable views and suggestions will guide us to improve our functioning towards consumer welfare. The consumer forums, the Lok Adalats provide inexpensive and speedy justice. You all may be aware that the three-tier quasi-judicial machinery set-up has, as on date, disposed of more than 32 lakh cases so far with a disposal rate of almost 90 per cent. The Department has taken a number of steps to improve the functioning of the consumer forums which includes financial assistance to the States for creation of infrastructural assets for better working environment of the forums. You will also be happy to know that under the project “Computerization and Computer Networking of Consumer Forums in Country” we have tried to computerize and network the consumer forums for better, transparent and easier functioning to protect consumers from all forms of exploitation and to ensure that the Consumer Protection Act delivers on its promises to the consumers.

“A Consumer Protection Regime” does not merely consist of laws and legislations. It is rather a constant interaction between businesses, government regulators, media, civil society organizations and most importantly, the consumers. The Department of Consumer Affairs has been addressing all the possible areas of bottlenecks, those which arise while implementing the Consumer Protection Act. We have comprehensively amended the Act three times in the years 1991, 1993 and in 2002 to make it more purposeful for the benefit of consumers. I am happy to inform you that in order to widen the scope of the Act for a 4th time and to remove the existing bottlenecks and to speed up the disposal of the cases within the specified time-frame, the Consumer Protection (Amendment) Bill, 2011, was introduced in the Lok Sabha on 16th December, 2011. I earnestly hope that the new amendment provisions would further improve the performance of the machinery in protecting the interests of consumers.

“Jago Grahak Jago”, the innovative campaign of the Department of Consumer Affairs educates the layman on his rights as a consumer through the electronic and print media. They succeeded in reaching a wider audience to educate them on their rights as consumers. Their conceptualization has been so attractive that even a layman can understand its message that has been put across in a simple way.

The Department is also looking at the issue of misleading advertisements of dishonest manufacturers, traders and service providers. These basically violate the consumer’s rights especially to “information and choice” and thereby have the potential to cause the consumer financial loss and even mental agony. As their influence on consumer choice is undeniable, the advertisements should observe fairness in competition and should respect the professional ethics so that the consumer’s need to be informed on choices in the market place is better served. Misleading and false advertisements are not only unethical but also distort competition and consumer choice. Our aim here has been to evolve a holistic, workable, comprehensive and enforceable approach. I look forward to having your wise counsel when we take up this important agenda during the course of the proceedings.

Another important area that has been engaging our attention is wastage of food witnessed at big social gatherings due to conspicuous consumption. This is highly reprehensible especially when millions of our people are struggling for a morsel of food and need to be tackled at societal level with the co-operation and involvement of all right thinking individuals.

Let me, before summing up recall what Mahatma Gandhi had said on the consumer and I quote: “A Consumer is the most important visitor on our premises. He is not dependent on us; we are on him. He is not an interruption to our work; he is the purpose of it. We are not doing a favour to a consumer by giving him an opportunity. He is doing us a favour by giving us an opportunity to serve him.” This statement of the Mahatma succinctly puts in a few words what all our laws, acts and statutes must stand for.

Now, I would request all of you to kindly share with us your views, opinions and suggestions on how best our policies and programmes can be shaped further so that they become valuable and powerful tools in the hands of the consumer with which he/she can become wise when it comes to acquiring the right product or service at the right price. I also take the opportunity to thank Hon’ble Ministers of various States/UTs who have taken time off their busy schedule to be present here. I hope the deliberations that we are going to have now will prove to be quite beneficial to one and all.

JAI HIND!